Financial management is such is huge issue for so many people and can be very destructive in relationships. JP

Debt Myths That Will Keep You Poor

By liveoutloudtruth.com

Everyone wants to be financially free and make more money; that’s what they say at least. But, most people have no clue what it really takes to achieve this. Sure, it sounds really good in theory but like everything else in life; it’s easier said than done.

You’re in debt, and it doesn’t feel good. You are living off credit cards and just barely getting by. Most likely you’re feeling stuck, trapped, confused and angry. Your feelings have possibly lead you to listening to the advice of people who are trying to help, but really don’t understand the in’s and out of how debt and money really work.

This advice tends to be rooted in fear, misconception or even just out right stupidity. We have done our research and here are some of the harmful myths about debt that you’ll want to discard quickly.

Myth #1 – Everyone Has A Healthy Amount Of Debt

No, no, there really isn’t. We are pretty sure that this myth was started by the credit card compa-nies & it’s 100% not true. Lenders may tell us that a 30% debt-to-income level is good , but think about that carefully.

Any debt puts you under obligation to someone else, someone who calls the shots of how much you must pay and when. The only healthy amount of debt is no debt.

Myth #2 – The Best Way To Get Rid Of Credit Card Debt Is To Cancel All Of Your Cards

That may seem like a good, albeit draconian, step to prevent you from building up more debt but it can backfire in some unexpected ways.

If you cancel an account that still has a balance, the credit card company will likely consider you a high-risk account and raise your interest rate on the remaining balance.

Cancelling a few at the same time can set off wide spread alarms that can significantly lower your FICO score, which will affect you in the future when you try getting financing for a major purchase (car, appliance, home) and even damage your chances of landing a new job or renting a different apartment.

I ’ve even heard of banks refusing to allow someone to open a checking account because ofbad credit history. A better option is to just stop using your cards. You can cut them up, lock them in a safe place, freeze them in blocks of ice or give them to a friend or family member who can resist your charm & pleading.

Myth #3 – Anyone Can File Bankruptcy And Walk Away From Their Debts

We hear celebrities and wealthy business people do that all the time, but it’s not as cut and dry as it seems. Though you can walk away from some of your debt, you can not walk away from all of it.

Filing a chapter 7 or a chapter 13 filing allows the interest to stop accumu-lating and the option to pay off the debt over 3-5 years. Also filing for bankruptcy does not get rid of student loan payments, child support or alimony and any state or federal taxes that you owe.

If you are unable to pay the normal everyday expenses of housing, food, utilities and other necessities on your current income, clearing your existing debts only frees you to start piling them up again because your lifestyle, regardless of how simple it may be, still exceeds your ability to sustain it.

What court is going to approve a plan with built-in failure? If you find yourself in that situation, a better choice may be working with a credit counselor who may be able to help you restructure your debt and find changes you can make (new or second job, new housing, etc.) that will enable you to at least break even.

What Can You do?

There are other get out of debt myths out there that are mostly based on fears and fantasy, like not being able to pay off your debt because it’s so high, or because you’re a student, or you have children which means endless expenses.

Being in debt is one time when you need to step back from your emotions and look at things objectively. Set a goal and a plan to reach that goal and do be afraid to ask for help from someone who has been there.

Financial Expert Loral Langemier understands being in debt and how to turn it around. Once she found her success, Loral Lange-meier decided she would start a coaching and seminar company to provide a catalyst that would allow others to get out of debt and reach their own success. She has even started a program to promote Kids and Family Financial Literacy focusing on 3-10 years old to help teach kids about money.

This year Loral and her team have decided to take their program one step further and take 30 men and women and personally walk them through her training course to help them get out of debt.

The program is first come, first serve and only 30 people can get into the program to ensure they get the hands-on attention they deserve to make sure they hit their goals.

Stop living a life of debt and scraping by and start taking steps to a life of financial freedom. Don’t miss out on this opportunity and apply today. Just click the button below and get started.